by SymphonieThe global esports industry has exploded in recent years, generating a staggering $3 billion in revenue in 2023. With a massive user base of over 575 million in 2024, the potential for growth is immense.
While many entrepreneurs and business owners are still focused on traditional industries, the esports sector presents a unique opportunity to pioneer a cutting-edge and exciting field.
The Dream vs. The Reality
The dream? For any esports lover, owning an esports team is a dream come true. The appeal is unquestionable, as well as the prestige, the potential for significant financial rewards, and the thrill of building a brand from scratch.
The reality? However, the reality of owning an esports team is far more complex (but not impossible). We all know that stepping into business in this industry can be overwhelming at first, but once you achieve your goals, all the efforts and sacrifices you have made will be worth it. Let’s get started!
Step 1 – Keeping The Right Attitude
Source: Photo by Alena Darmel: Pexels
It’s a demanding venture that requires a good investment of time, money, and effort. And, we are not saying that there won’t be challenges that abound, from securing sponsorships to managing player contracts and from going through complicated legal and financial nitty-gritty to building a strong brand identity.
As it is rightly said in the book of Frances Hodgson Burnett, “The Secret Garden”:
Where you tend a rose, my lad,
A thistle cannot grow!
Let’s focus on the team-building and winning part with open arms so that there is no space for losing the battle.
Step 2 – Know About Your War Zone
The second thing you need to get your stance straight is selecting the right game. This decision will impact your team’s potential success. Don’t worry! You simply have to follow these factors when making your choice:
- The popularity of the game: Opt for games with a large and dedicated player base. This ensures a steady stream of potential talent and a passionate fan following.
- The competitive structure: A strong competitive scene with regular tournaments and leagues is essential for player development and team exposure.
- The prize pool: Games with substantial prize pools attract top-tier talent and generate significant revenue.
- Viewership base: A game with a strong audience on platforms like Twitch and YouTube is ideal for attracting sponsors and generating brand awareness.
Popular esports options include:
- Counter-Strike: Global Offensive (CS:GO)
- Dota 2
- League of Legends
- PUBG: Battlegrounds
- World of Warcraft (WoW)
After selecting your game, focus on the fans or audience—research their demographics, interests, platforms, etc. Tailor your team’s brand and content to resonate with them by creating engaging social media posts, producing high-quality content, and collaborating with relevant influencers.
Step 3 – Start Building Your Team
You will be your own HR in the beginning, and trust us, this will be fun. Your esports team needs individuals who share the same passion as you. When recruiting top-tier talent, scout for promising players, assess their strengths and weaknesses, and evaluate their potential to contribute to the team’s success.
A well-rounded team with players who complement each other’s skills is all you need to begin with. Additionally, strong team chemistry and effective communication are essential for optimal performance.
Contract negotiations and player salaries: Offer fair compensation that aligns with the player’s value and market rates. Clear and legally sound contracts protect both the team and the player.
The Architects of Victory
A skilled coaching staff is essential for guiding players, developing strategies, and optimizing performance. Coaches play a pivotal role in player development, providing feedback and helping players reach their full potential. They also analyze game data, identify strengths and weaknesses, and devise effective strategies.
When hiring coaches, consider their experience, knowledge of the game, and communication skills. Invest in their development to ensure continued success.
Step 4 – Working On Building Your Identity
A strong brand identity helps you stand out and connect with your target audience. A well-designed logo, memorable color scheme, and catchy slogan can create a lasting impression.
Develop a compelling team story to resonate with fans. Share your journey, highlight individual player stories, and emphasize the team’s values and mission. This helps build a loyal fan base and attract sponsors.
Engage your audience: A strong social media presence can help your esports team grow. Platforms like Twitch, YouTube, Twitter, Instagram, and TikTok offer opportunities to connect with fans, share behind-the-scenes content, and promote your brand.
Use live streams, highlight reels, vlogs, and posts to deliver valuable content consistently and increase visibility.
Step 5 – Financial Backbone Of The Team
Effective financial management is key to long-term success. A detailed budget helps allocate resources wisely and track expenses, including player salaries, coaching fees, equipment costs, facility rentals, and travel expenses.
Forecast revenue streams: Identify potential income sources, such as tournament winnings, sponsorships, merchandise sales, and streaming revenue.
Paying Your Players Fairly
Player salaries are a significant expense. Use tools like OnPay’s payroll calculator to ensure fair compensation and compliance with tax laws. A transparent salary structure is essential for maintaining a positive team environment.
Look for Sponsorship and Partnerships
Sponsorships provide financial support. Identify sponsors aligned with your brand and audience. Build strong relationships by fulfilling obligations, providing exposure, and delivering on promises.
Merchandise and Fan Revenue
Selling team merchandise, such as jerseys and hats, generates additional revenue. Partner with a merchandise company to handle production and distribution.
Create exclusive content and experiences for fans, such as limited-edition merchandise and VIP access to events, to boost revenue.
Wrapping It Up!
The esports industry offers immense potential for aspiring team owners. While the journey may be challenging, the rewards can be substantial. Build a successful esports team by carefully planning, executing strategies, and adapting to the ever-evolving landscape. Passion, perseverance, and a strong team culture are key to achieving your goals.
